a) Briefly explain the cost that should be included when management decide on the capital required in year 0. why should this be included?

At present Solartech Skateboards is considering expanding its product line to include gas powered skateboards. There would be 5 million initial expedirected the purchase production equipment After 5 years when the project is expected to terminate the equipment could be sold for 560 000 (stimated) Because of the number of stores that wild Inventory the working-capital requirements are the same regardions of the level of sales. This project will require a one time in Investment of 550 000 let net wooing capital and working capital covered when the project is shut down. The company estimates that the skateboards will be viable for the next years and would result in net cash flow from the sot 90 000 Gears and $250.000 for years and S. The cost of capital for Solartech Skateboards is 10%